World’s largest shipping company halts Russian shipments

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Global shipping giant Maersk has announced that shipments to and from Russia will be temporarily suspended following Russia’s invasion of Ukraine and escalating economic sanctions imposed by the West. and other countries.

The suspension will apply to all goods except food, medical supplies and humanitarian equipment, according to the shipping giant.

“With the fluid circumstances of regular sanctions list updates and adjustments, we clearly see the need to take time to establish new processes and revise existing processes for accepting and processing bookings,” said Maersk to Insider in a statement.

A spokesperson told Insider that the suspension also applied to Ukraine given the escalating situation.

The shipping company added that “the stability and security of our operations are already directly and indirectly affected by the sanctions”, which governments around the world have put in place since the large-scale movement of the Russian army into Ukraine on Thursday. morning.

The shipping leader’s move will further hamper Russia’s ability to send and receive goods, which has already been limited by Western sanctions. The US, UK and EU, along with other countries, have attempted to prevent Russia from participating in the global financial system by blocking certain Russian banks from the cross-border financial transaction platform, SWIFT. The United States also froze $630 billion in foreign assets held by the Russian Central Bank.

On Monday, the British government asked port operators to block all Russian-linked ships from docking. On Saturday, French authorities also intercepted a Russian freighter in the English Channel after its suspected of having ties to a sanctioned Russian company, CNBC reported.

Maersk said on Tuesday it had already started to see the ripple effects of the sanctions on the global supply chain.

“We are starting to see the effect on global supply chain flows such as delays, detention of goods by customs authorities at various transshipment hubs, unpredictable operational impacts,” he said.

The shipping giant said monday that he was considering a “possible suspension of Maersk bookings to and from Russia”.

Maersk’s decision to go ahead with halting shipments is the latest from global companies that will set back Russia’s ability to participate in global trade. Carrier Ocean Network Express (ONE) also said on Monday it had suspended shipments to and from Russia, Reuters reported.

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